Zoominfo Technologies Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : <_ALACRA_META_ABSTRACT>Maybe let's just start with a quick overview of ZoomInfo just for the generalists in the room, and then we can jump into some specifics.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Great. Maybe just think about what's happened in recent quarters. Obviously, seen growth continue to inflect downwards, had some pressure at the low end. But there also seems to be some green shoots and signs of maybe stabilization and positivity in certain parts of the business. Maybe can you walk us through that? And what's the path to turn around from here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:40PM, ZI.OQ - Zoominfo Technologies Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Maybe just can you explain a little bit on the write-down dynamic in Q2 and what that led to Q3? I think that's still pretty not well understood by the investment community.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Okay. Got it. That's helpful. And obviously, you've seen a lot of macro pressures in the business. How do they look today, and maybe we need to think about the different pieces of the business and each of them has their own macro impact, but where they are today versus where they are maybe two or four quarters ago? And what assumptions are you making on underpinning guidance at least for the rest of the year?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. And then the natural follow-up to that is, thinking into 2025, I know you haven't put out formal guidance, but just how should we be thinking about the business and outlook heading into 2025? And what can drive a return to actual underlying growth?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Okay. Got it. Maybe let's talk a little bit about Copilot. So you gave some stats on the most recent earnings call, I think you said $60 million in ACV and up really meaningfully versus Q2. Can you talk a little bit about what's driving some of the early successes you're seeing there? And where has the traction been -- where have you been seeing the most traction specifically?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes, absolutely. Maybe let's think about the broader AI strategy right now. Where do you see the largest areas of opportunity near term? And where are you prioritizing your investments? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:40PM, ZI.OQ - Zoominfo Technologies Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Maybe alongside that, I think one question we get a lot is LLM obviously do a great job of being trained on data. And to a certain extent, you could start using that to actually get contact information and org charts. How do you think about the potential of AI as a threat or is this something that you feel well protected against?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. No, that makes a lot of sense. Maybe let's touch a little bit on competition because we've got -- that got brought up. Maybe let's separate into two classes. So one, you've seen some upstarts out there that have been making a lot of noise, Apollo and others. What are you seeing in terms of the competitive environment from them?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. And then the other kind of potential class of competitors is CRM getting into this space. Most notably, HubSpot. They bought Clearbit, they're doing some stuff with Breeze Intelligence. How are you thinking about the impact of that on the business?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. Great. Maybe let's now talk about some of the initiatives that you're driving to kind of improve the momentum of the business, starting with the focus on enterprise customers, larger customers. What are some of those initiatives you're doing both internally and externally to help just drive better execution there?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. And maybe sticking to some of those go-to-market changes, how do you maybe think about tweaking that without disrupting, or at least minimizing disruption to the business, and maybe helping drive expansion, because that's the other piece, right? NRR, you've talked about, to drive NRR upwards at those large customers once you land on them?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. That makes sense. And then, in the past, Henry has talked a little bit about wanting to embrace more of a PLG motion with the product. And I'm sure that can really help and focus -- landing efficiently at smaller customers. Can you maybe walk us through some of the changes and what momentum we've had with the PLG motion?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Got it. One of the initiatives that we've seen really over the past two years is diversifying the revenue base, not just from a customer standpoint, but vertical standpoint. Obviously, there was a lot of over-indexing to tech. Maybe can you walk us through how that motion has gone in terms of growing the non-tech verticals? And what investments you need to make, both in terms of data and even go to market, to really go after some of those verticals?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Are there any verticals worth calling out that you said that you've seen kind of some early signs of success in outside of tech?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Then maybe thinking about the international side of the business, obviously, very over-indexed in the U.S. Plenty of opportunity internationally. Kind of a similar sort of question, right? But as you think about expanding internationally, how do you figure out which geographies you want to target? And what investments do you make there both from data and go-to-market side of [page]?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Got it. It makes sense. Then maybe I want to think about -- since we were talking of AI, thinking about the Chorus acquisition, right, that does conversational AI. Maybe can you walk us through progress that you've made with that acquisition since then and how we think about it now in a post generative AI world?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. So now maybe turn to margins. So you have some investments that you're making in AI, some go-to-market changes. What steps can you take to preserve margins? Or is there potential for margin pressure as a result of all of these? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:40PM, ZI.OQ - Zoominfo Technologies Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. Got it. Maybe can you walk us through then, going forward, how should we be thinking about free cash flow per share as a KPI going forward?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. And just to clarify, when you talk about returning to sequential growth, you're saying in 2025 you expect to return back to days adjusted sequential growth, right?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Okay. Got it. No, that's helpful. Maybe -- you did mention DAS a few times, and that is kind of another product to sell and growth drivers. Maybe walk us through exactly what that product is and maybe some of the learnings you've had getting that product to market versus the core of Sales OS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:40PM, ZI.OQ - Zoominfo Technologies Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Got it. Then maybe sticking on the topic of data, can you walk us through how we should be thinking about the regulatory environment? Obviously, a lot of concerns around data privacy and security, and those maybe have gotten exponentially bigger in a post AI world. Walk us through kind of your maybe competitive advantage when it comes to that and how you're navigating the regulatory environment.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. Got it. And is that something that maybe as you think about expanding internationally, there's another layer on that? Or is that something that you're also already kind of prepared for?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Okay. Got it. Then maybe I want to turn to M&A. You've done a number of acquisitions over the years, obviously, ZoomInfo itself was formed through that. How should we be thinking about the M&A playbook and prioritization of M&A going forward?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. No, absolutely. And then if we think about maybe opportunities at the lower end, do you see an opportunity to maybe get more traction with some of the AI-native companies out there that themselves are now getting a lot of funding, growing, hiring a lot, and have that be a potential lever to growth?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes. Got it. And how the pricing environment, have you seen any kind of changes in that in general or been able to maintain pricing? And if so, what tools have you been able to use for that?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes, absolutely. And then maybe lastly, just turning back to Copilot. You talked a lot about getting existing customers to trial it. Has there been something that's been helpful from a net new perspective as in customers that hadn't -- no relationship with ZoomInfo before, you're now able to land them because you have a unique product in Copilot?

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Yes, absolutely. Maybe in the 30 seconds we have left, just how should we be thinking about the potential to expand your partner

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Awesome. We're out of time. It's a great place to jump off. Graham, thanks so much for being here. Thank you, everyone.